GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2001-399
AN ACT TO AMEND THE LAWS REGULATING REAL ESTATE APPRAISERS.
The General Assembly of North Carolina enacts:
SECTION 1. Article 1 of Chapter 93E of the General Statutes is amended as follows:
"Chapter 93E.
"North Carolina Appraisers Act.
"Article 1.
"Real Estate Appraiser.
"§ 93E-1-1. Title.
This Chapter shall be known and may be cited as the "North Carolina Appraisers Act".
"§ 93E-1-2: Repealed by Session Laws 1995, c. 482, s. 12.
"§ 93E-1-2.1.
Registration, License license, or certificate required of
real estate appraisers.
Beginning October 1, 1995, it shall be unlawful for any
person in this State to act as a real estate appraiser, to directly or
indirectly engage or assume to engage in the business of real estate appraisal,
or to advertise or hold himself or herself out as engaging in or conducting the
business of real estate appraisal without first obtaining a registration,
license license, or certificate issued by the Appraisal Board
under the provisions of this Chapter. It shall also be unlawful, with regard
to any real property where any portion of that property is located within this
State, for any person to perform any of the acts listed above without first
being registered, licensed, or certified by the Appraisal Board under the
provisions of this Chapter.
"§ 93E-1-3.
When registration, license license, or certificate not
required.
(a) No trainee
registration, license license, or certificate shall be issued
under the provisions of this Chapter to a partnership, association,
corporation, firm, or group. However, nothing herein shall preclude a registered
trainee, State-licensed or State-certified real estate appraiser from
rendering appraisals for or on behalf of a partnership, association,
corporation, firm, or group, provided the appraisal report is prepared by a
State-licensed or State-certified real estate appraiser or by a registered
trainee under the immediate personal direction of, the State-licensed or State-certified
real estate appraiser and is reviewed and signed by that State-licensed or
State-certified appraiser.
(b) Any person
who is not State-licensed or State-certified under this Chapter may assist a
State-licensed or State-certified real estate appraiser in the performance of
an appraisal provided that the person is registered trainee and is actively and
personally supervised by a State-certified appraiser and provided further that
any appraisal report rendered in connection with the appraisal is reviewed and
signed by the State-certified real estate appraiser.
(c) Nothing in this
Chapter shall preclude a real estate broker or salesman licensed under Chapter
93A of the General Statutes from performing a comparative market analysis,
analysis as defined in G.S. 93E-1-4, provided the person does not
represent himself or herself as being a registered trainee or a State-licensed
or State-certified as a real estate appraiser. A real estate
broker or salesperson may perform a comparative market analysis for
compensation or other valuable consideration only for prospective or actual
brokerage clients or for real property involved in an employee relocation
program.
(d) Nothing in this Chapter shall abridge, infringe upon, or otherwise restrict the right to use the term "certified ad valorem tax appraiser" or any similar term by persons certified by the Department of Revenue to perform ad valorem tax appraisals, provided that the term is not used in a manner that creates the impression of certification by the State to perform real estate appraisals other than ad valorem tax appraisals.
(e) Nothing in this Chapter shall entitle a registered trainee or a State-licensed or State-certified real estate appraiser to appraise real estate for ad valorem tax purposes unless the person has first been certified by the Department of Revenue pursuant to G.S. 105-294.
(f) A trainee
registration, license license, or certificate is not required
under this Chapter for:
(1) Any person, partnership, association, or corporation that performs appraisals of property owned by that person, partnership, association, or corporation for the sole use of that person, partnership, association, or corporation;
(2) Any court-appointed commissioner who conducts an appraisal pursuant to a judicially ordered evaluation of property;
(3) Any person to qualify as an expert witness for court or administrative agency testimony, if otherwise qualified;
(4) A person who appraises standing timber so long as the appraisal does not include a determination of value of any land;
(5) Any person employed by a lender in the performance of appraisals with respect to which federal regulations do not require a licensed or certified appraiser; and
(6) A person who performs ad valorem tax appraisals and is certified by the Department of Revenue under G.S. 105-294 or G.S. 105-296;
however, any person who is registered, licensed, or certified under this Chapter and who performs any of the activities set forth in subdivisions (1) through (5) of this subsection must comply with all of the provisions of this Chapter.
"§ 93E-1-3.1. Prohibited use of title; permissible use of title.
(a) It shall be unlawful for
any person to assume or use the title "registered trainee",
"State-licensed real estate appraiser", "State-certified real
estate appraiser", or any title designation title, designation,
or abbreviation likely to create the impression of registration, licensure
licensure, or certification as a real estate appraiser, unless the
person is registered, licensed licensed, or certified by
the Appraisal Board in accordance with the provisions of this Chapter. The
Board may adopt for the exclusive use of persons licensed or certified
under the provisions of this Chapter, a seal, symbol, or other mark identifying
the user as a State-licensed or State-certified real estate appraiser.
(b) Any person certified as a real estate appraiser by an appraisal trade organization shall retain the right to use the term "certified" or any similar term in identifying the person to the public, provided that:
(1) In each instance wherein the term is used, the name of the certifying organization or body is prominently and conspicuously displayed immediately adjacent to the term; and
(2) The use of the term
does not create the impression of certification by the State. This subsection
does not entitle any person certified only by a trade organization to conduct
an appraisal that requires a State registration, license license,
or certification.
(c) The term "registered
trainee", "State-licensed real estate appraiser",
"State-certified real estate appraiser", or any similar term shall
not be used following or immediately in connection with the name of a
partnership, association, corporation, or other firm or group, or in a manner
that might create the impression of registration, licensure licensure,
or certification as a real estate appraiser under this Chapter.
"§ 93E-1-4. Definitions.
When used in this Chapter, unless the context otherwise requires, the term:
(1) "Appraisal" or "real estate appraisal" means an analysis, opinion, or conclusion as to the value of identified real estate or specified interests therein performed for compensation or other valuable consideration.
(2) "Appraisal assignment" means an engagement for which an appraiser is employed or retained to act, or would be perceived by third parties or the public as acting, as a disinterested third party in rendering an unbiased appraisal.
(3) "Appraisal Board" or "Board" means the North Carolina Appraisal Board established under G.S. 93E-1-5.
(4) "Appraisal Foundation" or "Foundation" means The Appraisal Foundation established on November 20, 1987, as a not-for-profit corporation under the laws of Illinois.
(5) "Appraisal report" means any communication, written or oral, of an appraisal.
(6) "Certificate" means that document issued by the North Carolina Appraisal Board evidencing that the person named therein has satisfied the requirements for certification as a State-certified real estate appraiser and bearing a certificate number assigned by the Board.
(7) "Certificate holder" means a person certified by the Board under the provisions of this Chapter.
(7a) "Comparative market
analysis" means the analysis of sales of similar recently sold properties
in order to derive an indication of the probable sales price of a particular
property by a licensed real estate broker or salesperson for the broker's or
salesperson's principal. salesperson.
(8) "License" means that document issued by the North Carolina Appraisal Board evidencing that the person named therein has satisfied the requirements for licensure as a State-licensed real estate appraiser and bearing a license number assigned by the Board.
(9) "Licensee" means a person licensed by the Board under the provisions of this Chapter.
(10) "Real estate" or "real property" means land, including the air above and ground below and all appurtenances and improvements thereto, as well as any interest or right inherent in the ownership of land.
(11) "Real estate appraiser" or "appraiser" means a person who for a fee or valuable consideration develops and communicates real estate appraisals or otherwise gives an opinion of the value of real estate or any interest therein.
(12) "Real estate appraising" means the practice of developing and communicating real estate appraisals.
(13) "Residential real estate" means any parcel of real estate, improved or unimproved, that is exclusively residential in nature and that includes or is intended to include a residential structure containing not more than four dwelling units and no other improvements except those which are typical residential improvements that support the residential use for the location and property type. A residential unit in a condominium, town house, or cooperative complex, or planned unit development is considered to be residential real estate.
(14) "State-certified general real estate appraiser" means a person who holds a current, valid certificate as a State-certified general real estate appraiser issued under the provisions of this Chapter.
(15) "State-certified residential real estate appraiser" means a person who holds a current, valid certificate as a State-certified residential real estate appraiser issued under the provisions of this Chapter.
(16) "State-licensed residential real estate appraiser" means a person who holds a current, valid license as a State-licensed residential real estate appraiser issued under the provisions of this Chapter.
(17) "Temporary appraiser licensure or certification" means the issuance of a temporary license or certificate by the Board to a person licensed or certified in another state who enters this State for the purpose of completing a particular appraisal assignment.
(18) "Trainee",
"registered trainee", or "trainee real estate appraiser"
means a person who has satisfied the requirements to be registered as a
trainee pursuant to G.S. 93E-1-6, but who has not satisfied the experience and
other requirements set forth in G.S. 93E-1-6 to be licensed as a holds a
current, valid registration as a trainee real estate appraiser. appraiser
issued under the provisions of this Chapter.
(19) "Trainee registration" or "registration as a trainee" means the document issued by the North Carolina Appraisal Board evidencing that the person named therein has satisfied the requirements of registration as a trainee real estate appraiser and bearing a registration number assigned by the Board.
"§ 93E-1-5. Appraisal Board.
(a) There is created the
North Carolina Appraisal Board for the purposes set forth in this Chapter. The
Board shall consist of seven members. The Governor shall appoint five members
of the Board, and the General Assembly shall appoint two members in accordance
with G.S. 120-121, one upon the recommendation of the President Pro Tempore of
the Senate and one upon the recommendation of the Speaker of the House of
Representatives. Each member Members appointed by the Governor
shall be appointed from a different congressional district. geographically
diverse areas of the State. The appointee recommended by the Speaker of the
House of Representatives and the appointees of the Governor shall be persons
who have been engaged in the business of real estate appraising in this State
for at least five years immediately preceding their appointment and are also
State-licensed or State-certified real estate appraisers. No more than four
three of the appointees may be members of the same appraiser trade organization,
group, or committee organization at any one time. The appointee
recommended by the President Pro Tempore of the Senate shall be a person not
involved directly or indirectly in the real estate, real estate appraisal, or
the real estate lending industry. Members of the Board shall serve three-year
terms, so staggered that the terms of three members expire in one year, the
terms of two members expire in the next year, and the terms of two members
expire in the third year of each three-year period. The members of the Board
shall elect one of their members to serve as chairman of the Board for a term
of one year. The Governor may remove any member of the Board appointed by the
Governor for misconduct, incompetency, or neglect of duty. The General Assembly
may remove any member appointed by it for the same reasons. Successors shall be
appointed by the appointing authority making the original appointment. All
vacancies occurring on the Board shall be filled, for the unexpired term, by
the appointing authority making the original appointment. Vacancies in
appointments made by the General Assembly shall be filled in accordance with
G.S. 120-122. Initial terms of office commence commenced July 1,
1994.
(b) The Board is an occupational licensing agency governed by Chapter 150B of the General Statutes; its decisions are final agency decisions subject to judicial review under Article 4 of Chapter 150B of the General Statutes.
(c) Members of the Board shall be paid the per diem, subsistence, and travel allowances at the rates set forth in G.S. 93B-5; provided that none of the expenses of the Board or the compensation or expenses of any officer or employee thereof shall be payable out of the treasury of the State of North Carolina; the total expenses of the administration of this Chapter shall not exceed the total income therefrom; and neither the Board nor any officer or employee thereof shall have any power or authority to make or incur any expense, debt, or other financial obligation binding upon the State of North Carolina.
(d) The Board shall adopt a seal for its use, which shall bear thereon the words "North Carolina Appraisal Board". Copies of all papers in the office of the Board duly certified and authenticated by the seal of the Board shall be received in evidence in all courts and administrative bodies and with like effect as the originals.
(e) The Board may employ an Executive Director and professional and clerical staff as may be necessary to carry out the provisions of this Chapter and to put into effect the rules that the Board may promulgate. The Board shall fix salaries. The Board shall have the authority to issue to its employees credentials or other means of identification.
(f) The Board shall be entitled to the services of the Attorney General in connection with the affairs of the Board or may, in its discretion, employ an attorney to assist or represent it in the enforcement of this Chapter.
(g) The Board may prefer a complaint for violation of this Chapter before any court of competent jurisdiction, and it may take the necessary legal steps through the proper legal offices of the State to enforce the provisions of this Chapter.
(h) The Board shall have the power to acquire, hold, rent, encumber, alienate, and otherwise deal with real property in the same manner as a private person or corporation, subject only to the approval of the Governor and the Council of State. Collateral pledged by the Board for an encumbrance is limited to the assets, income, and revenues of the Board.
(i) The Board may purchase, rent, or lease equipment and supplies and purchase liability insurance or other insurance to cover the activities of the Board, its operations, or its employees.
"§ 93E-1-6.
Qualifications for State registration, licensure licensure,
and certification; applications; application fees; examinations.
(a) Any person desiring
to be registered as a trainee or to obtain licensure as a State-licensed real
estate appraiser or certification as a State-certified real estate appraiser
shall make written application to the Board on the forms as are prescribed by
the Board setting forth the applicant's qualifications for registration,
licensure licensure, or certification. Each applicant shall
satisfy the following qualification requirements:
(1) Each applicant for licensure
as a State-licensed residential real estate appraiser shall have demonstrated
registration as a trainee must demonstrate to the Board that the
applicant possesses the knowledge and competence necessary to perform
appraisals of residential and other real estate as the Board may prescribe
of real property, by having satisfactorily completed within the five-year
period immediately preceding the date application is made, a Board-approved
course approved by the Board of instruction in real estate appraisal principles
and practices consisting of at least 90 hours or the minimum requirement as
imposed by the federal government, whichever is greater, of classroom
instruction in subjects determined by the Board; and by satisfying any
additional qualification the Board imposes by rule, not inconsistent with any
requirements imposed by the federal government.
(1a) Each applicant for licensure as a State-licensed residential real estate appraiser shall have demonstrated that the applicant possesses the knowledge and competence necessary to perform appraisals of real property by having satisfactorily completed within the five-year period immediately preceding the date application is made a course approved by the Board of instruction in real estate appraisal principles and practices consisting of at least 90 hours or the minimum requirement as imposed by the federal government, whichever is greater, of classroom instruction in subjects determined by the Board; shall present evidence satisfactory to the Board of at least 2,000 hours or the minimum requirement as imposed by the federal government, whichever is greater, of experience in real estate appraising; and shall satisfy the additional qualifications as may be imposed by the Board by rule, not inconsistent with any requirements imposed by the federal government; or shall possess education or experience which is found by the Board in its discretion to be equivalent to the above requirements.
(2) Each applicant for
certification as a State-certified residential real estate appraiser shall have
demonstrated that the applicant possesses the knowledge and competence
necessary to perform appraisals of residential and other real estate real
property as the Board may prescribe by having satisfactorily completed,
within the five-year period immediately preceding the date the application is
made, a Board-approved course approved by the Board of
instruction in real estate appraisal principles and practices consisting of at
least 120 hours hours, or the minimum requirement as imposed by the
federal government, whichever is greater, of classroom instruction in
subjects determined by the Board; shall present evidence satisfactory to the
Board of at least 2,000 2,500 hours or the minimum requirement
as imposed by the federal government, whichever is greater, of experience
in real estate appraising within the five-year period immediately preceding the
date application is made, and over a period of at least two calendar years; and
shall satisfy the additional qualifications criteria as may be imposed by the
Board by rule, not inconsistent with any requirements imposed by the federal
government; or shall possess education and experience which is found by the
Board in its discretion to be equivalent to the above requirements.
(3) Each applicant for
certification as a State-certified general real estate appraiser shall have
demonstrated that the applicant possesses the knowledge and competence
necessary to perform appraisals of all types of real estate property
by having satisfactorily completed, within the five-year period immediately
preceding the date application is made, a Board-approved course approved
by the Board of instruction in general real estate appraisal practices
consisting of at least 180 hours or the minimum requirement as imposed by
the federal government, whichever is greater, of classroom instruction in
subjects determined by the Board; shall present evidence satisfactory to the
Board of at least 2,0003,000 hours or the minimum requirement
as imposed by the federal government, whichever is greater, of experience
in real estate appraising within the five-year period immediately preceding the
date application is made, and over a period of at least two and one-half
calendar years, fifty percent (50%) of which must be in appraising
nonresidential real estate; and shall satisfy the additional qualifications
criteria as may be imposed by the Board by rule, not inconsistent with any
requirements imposed by the federal government; or the applicant shall possess
education or experience which is found by the Board in its discretion to
be equivalent to the above requirements.
(4) Each
applicant for registration as a trainee must demonstrate to the Board that the
applicant possesses the knowledge and competence necessary to perform an
appraisal of residential and other real estate, as prescribed by the Board, by:
a. Having
satisfactorily completed within the five-year period immediately preceding the
date application is made, a course, approved by the Board, of instruction in
real estate appraisal principles and practices consisting of at least 90 hours
of classroom instruction in subjects determined by the Board; and
b. Satisfying
any additional qualifications the Board imposes by rule, not inconsistent with
any requirements imposed by the federal government;
or shall possess education or
experience that the Board, in its discretion, determines to be equivalent to
the requirements set forth in sub-subdivisions a. and b. of this subdivision.
Provided, however, that any persons who, on the effective date of this Chapter,
have a State license or certificate to engage in business as a real estate
appraiser issued by the predecessor of the Board, shall be entitled to and
shall receive the same license or certificate from the Board as they are then
holding without further education, experience, examination, or application fee.
(b) Each application for registration as a trainee or for State licensure or certification as a real estate appraiser shall be accompanied by a fee of one hundred fifty dollars ($150.00), plus any additional fee as may be necessary to defray the cost of any competency examination administered by a private testing service.
(c) Any person who files
with the Board an application for State registration, licensure licensure,
or certification as a real estate appraiser shall be required to pass an
examination to demonstrate the person's competence. The Board shall also make
an investigation as it deems necessary into the background of the applicant to
determine the applicant's qualifications with due regard to the paramount
interest of the public as to the applicant's competency, honesty,
truthfulness, and integrity. In addition, the Board may investigate and
consider whether the applicant has had any disciplinary action taken against
any other professional license in North Carolina or any other state, or if the
applicant has committed or done any act which, if committed or done by any real
estate trainee or appraiser, would be grounds under the provisions hereinafter
set forth for disciplinary action including the suspension or revocation of
registration, licensure, or certification, or whether the applicant has been
convicted of or pleaded guilty to any criminal act. If the results of the
investigation shall be satisfactory to the Board Board, and the
applicant is otherwise qualified, then the Board shall issue to the applicant a
trainee registration, license or certificate authorizing the applicant
to act as a registered trainee real estate appraiser, State-licensed
real estate appraiser appraiser, or a State-certified real estate
appraiser in this State.
(d) If, based
upon the results of the investigation, the moral character of the applicant is
in question, If the applicant has not affirmatively demonstrated that
the applicant meets the requirements for registration, licensure, or
certification, action on the application will be deferred pending a hearing
before the Board.
(d) Any person
who files with the Board an application for registration as a trainee real
estate appraiser shall be required to pass an examination to demonstrate the
person's competence. The Board shall also make an investigation as it deems
necessary into the background of the applicant to determine the applicant's
qualifications with due regard to the paramount interest of the public as to
the applicant's honesty, truthfulness, and integrity. If the results of the
investigation shall be satisfactory to the Board and the applicant is otherwise
qualified, then the Board shall issue to the applicant a registration
authorizing the applicant to act as a registered trainee real estate appraiser
in this State. If, based upon the results of the investigation, the moral
character of the applicant is in question, action on the application will be
deferred pending a hearing before the Board.
"§ 93E-1-6.1. Trainee supervision.
All trainees shall perform all real estate appraisal-related activities under the immediate, active, and personal supervision of a State-licensed or State-certified real estate appraiser. All appraisal reports must be signed by the State-licensed or State-certified appraiser who supervised the trainee. By signing the appraisal report, the State-licensed or State-certified appraiser accepts shared responsibility, with the trainee, for the content of and conclusions in the report.
"§ 93E-1-7.
Registration, license and certificate renewal; renewal fees; continuing
education; reinstatement; replacement registrations, licenses and
certificates; registration, licensure licensure, and
certification history. history; address changes.
…
"§ 93E-1-8. Education program approval and fees.
…
"§ 93E-1-9.
Nonresident registration, licensure licensure, and
certification.
(a) An applicant from
another state which offers real estate trainee registration or the
equivalent, appraiser licensing or certification privileges to residents of
North Carolina may become registered, licensed, or certified in North Carolina
by conforming to all of the provisions of this Chapter and, in the discretion
of the Board, such other terms and conditions as are required of North
Carolina may become State-licensed or certified by conforming to all of the
provisions of this Chapter, and, in the discretion of the Board, such other
terms and conditions as are required of residents applying for certification
or licensure trainee registration, licensure, and certification in
such other state.
(b) The Board, in its
discretion, may undertake to register, license license, or
certify on a reciprocal basis, persons registered, licensed licensed,
or certified in other states who are deemed by the Board to possess
qualifications equivalent to resident North Carolina trainees or State-licensed
or State-certified real estate appraisers.
(c) The Board may by rule
establish a procedure for granting temporary trainee registration,
appraiser licensure or certification and may charge an application fee of fifty
dollars ($50.00) one hundred fifty dollars ($150.00) for temporary trainee
registration, appraiser licensure licensure, or
certification.
(d) Every applicant for trainee
registration, State licensure licensure, or certification
under this Chapter who is not a resident of this State shall submit with his
application an irrevocable consent that service of process in any action
against the applicant arising out of the applicant's activities as a registered
trainee or State-licensed or State-certified real estate appraiser may be
made by delivery of the process on the Executive Director of the Board.
"§ 93E-1-10. Rule-making authority.
The Board may adopt rules not inconsistent with the provisions of this Chapter and the General Statutes of North Carolina which may be reasonably necessary to implement, administer, and enforce the provisions of this Chapter, including, but not limited to, the authority to:
(1) Prescribe forms and procedures for submitting information to the Board;
(2) Prescribe standards of practice for persons registered as a trainee, licensed or certified under this Chapter; and
(3) Prescribe standards for the operation of real estate appraiser education programs.
"§ 93E-1-11. Register of applicants; roster of trainees, State-licensed and State-certified appraisers; financial report to Secretary of State; administrative expenses.
(a) The Executive Director of the Board shall keep a register of all applicants for State trainee registration or for State licensure or certification as real estate appraisers, showing for each the date of application, name, business or residence address, and whether the registration, license or certificate was granted or refused. The register shall be prima facie evidence of all matters received therein.
(b) The Executive Director of the Board shall also keep a current roster showing the names and places of business of all registered trainees and State-licensed and State-certified real estate appraisers, which roster shall be kept on file in the office of the Board and be open to public inspection.
(c) On or before the first day of November of each year, the Board shall file with the Secretary of State a copy of the roster of registered trainees and real estate appraisers licensed or certified by the Board and a report containing a complete statement of income received by the Board in connection with the trainee registration and the licensure and certification of real estate trainees and appraisers for the preceding fiscal year ending June 30th, attested by the affidavit of the Executive Director of the Board.
(d) In addition to those
fees prescribed in this Chapter for making application for and renewing trainee
registrations, appraiser licenses licenses, and certificates,
the Board may collect from applicants and holders of the licenses and
certificates and remit to the appropriate agency or instrumentality of the
federal government any additional fees as may be required to render North
Carolina State-licensed or State-certified appraisers eligible to perform
appraisals in connection with federally related transactions as well as an
additional fee of twenty dollars ($20.00) to cover the administrative costs
associated therewith.
"§ 93E-1-12. Disciplinary action by Board.
(a) The Board may take disciplinary action against registered trainees and State-licensed or State-certified real estate appraisers. Upon its own motion or the complaint of any person, the Board may investigate the actions of any person registered as a trainee or licensed or certified as a real estate appraiser under this Chapter, any person who performs appraisals without an appropriate registration, license, or certificate, or any person who holds himself or herself out to be registered as a trainee or licensed or certified as a real estate appraiser when the person holds no registration, license, or certificate. If the Board finds probable cause to believe that a person registered as a trainee or licensed or certified as a real estate appraiser under this Chapter has violated any of the provisions of this Chapter, the Board may hold a hearing on the allegations of misconduct.
The Board may suspend or revoke the registration, license, or
certificate granted to any person under the provisions of this Chapter or
reprimand any registered trainee, licensee, or certificate holder if, following
a hearing, hearing or by consent, the Board finds the registered
trainee, licensee, or certificate holder to have:
(1) Procured registration, licensure, or certification pursuant to this Chapter by making a false or fraudulent representation;
(2) Made any willful or negligent misrepresentation or any willful or negligent omission of material fact;
(3) Accepted an appraisal assignment when the employment is contingent upon the appraiser reporting a predetermined result, analysis, or opinion, or when the fee to be paid for the performance of the appraisal assignment is contingent upon the opinion, conclusion, or valuation reached or upon consequences resulting from the appraisal assignment;
(4) Acted or held himself or herself out as a registered trainee or a State-licensed or State-certified real estate appraiser when not so registered, licensed, or certified;
(5) Failed as a State-licensed or State-certified real estate appraiser to actively and personally supervise any person not licensed or certified under this Chapter who assists the State-licensed or State-certified real estate appraiser in performing real estate appraisals;
(6) Failed to make available to the Board for its inspection without prior notice, originals or true copies of all written contracts engaging the person's services to appraise real property, and all reports and supporting data assembled and formulated by the appraiser in preparing the reports;
(7) Paid a fee or valuable consideration to any person for acts or services performed in violation of this Chapter;
(8) Acted as a real estate appraiser in an unworthy or incompetent manner as to endanger the interest of the public;
(9) Violated any of the standards of practice for real estate appraisers or any other rule promulgated by the Board;
(10) Performed any other act which constitutes improper, fraudulent, or other dishonest conduct; or
(11) Violated any of the provisions of this Chapter.
The Executive Director of the Board shall transmit a
certified copy of all final orders of the Board suspending or revoking registrations,
licenses licenses, or certificates issued under this Chapter to
the clerk of superior court of the county in which the licensee or certificate
holder maintains the person's principal place of business. The clerk shall
enter these orders upon the judgment docket of the county.
(b) Following a hearing, or by consent, the Appraisal Board may also suspend or revoke any registration, license, or certificate issued under the provisions of this Chapter or reprimand any registered trainee, licensee, or certificate holder when:
(1) The registered
trainee, licensee, or certificate holder has been convicted of or has entered a
plea of guilty or no contest upon which final judgment is entered by a court of
competent jurisdiction in this State, or any other state, to an offense which,
which involves moral turpitude, in which an essential element is dishonesty,
fraud, or deceit, or which, in the discretion of the Board, would
reasonably affect the performance of the registered trainee, licensee, or
certificate holder in the real estate appraisal business;
(2) A final civil judgment
has been entered against the registered trainee, licensee, or certificate
holder on grounds of fraud, misrepresentation, or deceit in the making of any
appraisal of real estate; or
(3) The registered
trainee, licensee, or certificate holder has violated any of the provisions of
G.S. 93E-1-13(a) when appraising his own property. property;
(4) The trainee, licensee, or certificate holder has had a real estate trainee registration or its equivalent, real estate appraiser license, or real estate appraiser certification suspended, revoked, or denied by a real estate licensing board in another state;
(5) The trainee, licensee, or certificate holder has had any disciplinary action taken against any other professional license in North Carolina or any other state;
(6) The trainee, licensee, or certificate holder has been adjudged mentally incompetent by a court; or
(7) The trainee, licensee, or certificate holder performs any of the duties of a real estate appraiser, including, but not limited to, site inspection and public records checks, while impaired by alcohol or drugs.
(b1) If any of the actions taken in subdivision (1), (2), or (4) through (6) of subsection (b) of this section are taken against a trainee, licensee, or certificate holder, the trainee, licensee, or certificate holder must report such actions within 60 days of the final judgment or final order in the case.
(c) When a person registered as a trainee or licensed or certified as a real estate appraiser under this Chapter is accused of any act, omission, or misconduct which would subject the person to disciplinary action, the registered trainee, licensee, or certificate holder, with the consent and approval of the Board, may surrender his or her registration, license, or certificate and all the rights and privileges pertaining to it for a period of time established by the Board. A person who surrenders his or her registration, license, or certificate shall not thereafter be eligible for or submit any application for registration, licensure, or certification as a real estate appraiser during the period that the registration, license, or certificate is surrendered.
(d) The Board shall have the power to issue subpoenas requiring the attendance of persons and the production of papers and records before the Board in any hearing, investigation, inquiry, or other proceeding conducted by it. Upon the production of any papers, records, or documents, the Board shall have the power to authorize true copies thereof to be substituted in the permanent record of the matter in which the books, records, or documents shall have been introduced in evidence.
"§ 93E-1-12.1. Investigations and complaints.
(a) The Board may dismiss a complaint, accept a consent order, or hold a hearing, or may accept a voluntary surrender of a registration, license, or certificate or of approval as a course sponsor.
(b) Records, papers, and other documents containing information received, collected, or compiled by the Board, its members, or its employees, as a result of a complaint or investigation, shall not be considered public records within the meaning of Chapter 132 of the General Statutes. Any statement of charges contained within a notice of a hearing to be held by the Board is a public record, even though it may contain information collected and compiled as a result of a complaint or investigation against a trainee, licensee, or certificate holder or an applicant. Any record, paper, or other document admitted into evidence in a hearing held by the Board, and any final decisions and orders by the Board, including consent orders, shall be public records within the meaning of Chapter 132 of the General Statutes.
(c) The Board may inspect records maintained pursuant to this Chapter periodically, without prior notice, and may also inspect these records whenever the Board determines that they are pertinent to an investigation of any specific complaint against a person registered, licensed, or certified by the Board.
"§ 93E-1-13. Penalty for violation of this Chapter.
(a) Any person who acts
as, or holds himself or herself out to be, a registered trainee or a State-licensed
or State-certified real estate appraiser without first obtaining a
registration, license, or certificate as provided in this Chapter, or who
willfully performs the acts specified in G.S. 93E-1-12(a)(1) through (10), G.S.
93E-1-12(a) shall be guilty of a Class 1 misdemeanor.
(b) The Board may appear
in its own name in superior court in actions for injunctive relief to prevent
any person from violating the provisions of this Chapter or the rules
promulgated by the Board. The superior court shall have the power to grant
these injunctions whether or not criminal prosecution has been or may be
instituted as a result of the violations, and whether or not the person is the
holder of a registration, license license, or certificate
issued by the Board under this Chapter."
SECTION 2. G.S. 53-238 is amended by adding the following new subdivisions to read:
"(7) Influencing or attempting to influence through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan. Nothing in this subdivision shall be construed to prohibit a mortgage broker or mortgage banker from asking the appraiser to:
a. Consider additional appropriate property information;
b. Provide further detail, substantiation, or explanation for the appraiser's value conclusion; or
c. Correct errors in the appraisal report.
(8) Failing to promptly pay when due according to the normal and customary business practices between the lender and appraiser reasonable fees to a real estate appraiser for appraisal services that are:
a. Requested from the appraiser in writing by the mortgage broker or mortgage banker or an employee of the mortgage broker or mortgage banker; and
b. Performed by the appraiser in connection with the origination or closing of a mortgage loan for a customer or the mortgage broker or mortgage banker."
SECTION 3. G.S. 53-243.11, as enacted by either House Bill 1106 or Senate Bill 904, 2001 General Assembly, is amended by adding a new subdivision to read:
"(11) To influence or attempt to influence through coercion, extortion, or bribery, the development, reporting, result, or review of a real estate appraisal sought in connection with a mortgage loan. Nothing in this subdivision shall be construed to prohibit a mortgage broker or mortgage banker from asking the appraiser to do one or more of the following:
a. Consider additional appropriate property information.
b. Provide further detail, substantiation, or explanation for the appraiser's value conclusion.
c. Correct errors in the appraisal report."
SECTION 4. Section 3 of this act becomes effective July 1, 2002, if House Bill 1106 or Senate Bill 904 of the 2001 General Assembly becomes law. The remainder of this act becomes effective October 1, 2001, except that the amendments made to G.S. 93E-1-5 by Section 1 of this act are effective with respect to appointments for terms beginning July 1, 2001, and after.
In the General Assembly read three times and ratified this the 22nd day of August, 2001.
s/ Beverly E. Perdue
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ Michael F. Easley
Governor
Approved 7:44 p.m. this 30th day of August, 2001